\pgfplotsset{compat=1.12, width=5cm, height=6cm}
\begin{tikzpicture}[scale=1.2, every node/.style={transform shape}]
% Define parameters
\def\thetaparam{.6}
\def\gammaparam{.4}
\def\etaparam{-2}
\def\alphaparam{.6}
\def\height{5}
\def\width{8}
% Plot curves
\begin{axis}[axis lines=none, 
	xmin=0, 
	ymin=0, 
	y=5.5cm, 
	x=7cm, 
	clip=false]

\draw [decorate,ultra thin,blue!100,decoration={brace,amplitude=5pt},xshift=0pt,yshift=0pt]
(axis cs: .8+.006,.008) -- (axis cs: 1.1435-0.006,.008) node [blue!100,midway,yshift=10pt] 
{\scriptsize $L_0 (1+m)^t$};

\draw [decorate,ultra thin,blue!100,decoration={brace,amplitude=3pt},xshift=0pt,yshift=0pt]
(axis cs: 1.1435+.01,{.45*(-.4*((.65)-1.9))^((\alphaparam*1.03)-1)+.3}) -- (axis cs: 1.1435+.01,{.45*(-.4*((.65)-1.9))^((\alphaparam*1.03)-1)+.23}) node [blue!100,midway,xshift=+30pt,yshift=.5pt] 
{\scriptsize $(\widebar{A}-\widetilde{A})Y'_L (t)$};

\draw[->,blue!100, ultra thin] (axis cs: .8,.11) -- (axis cs: .255,.11);
\draw[fill=blue!100,draw=none] (axis cs: .8,.11) circle (.5pt);
\draw[fill=blue!100,draw=none] (axis cs: .65,.11) circle (.5pt);
\node[blue!100] at (axis cs: .195,.114) {\tiny Time};
\node[blue!100] at (axis cs: .78,.135) {\tiny $0$};
\node[blue!100] at (axis cs: .63,.135) {\tiny $t$};
\node[blue!100] at (axis cs: .279,.135) {\tiny $T$};


\addplot[name path=foreign,domain={0.2:1},black,samples=100]
		{.4*(.3*x-.02)^(\alphaparam-1)-.45} 
		node[pos=1, right, yshift=-4pt,xshift=-1pt,black]{$Y'_{L'}$};

\addplot[name path=home,domain={0.04:.96},black,samples=100] 
		{.45*(-.4*(x-1.9))^((\alphaparam*1.03)-1)+.3} 
		node[pos=1, right, yshift=+9pt,xshift=-12pt,black]{$Y_L$}
		coordinate[pos=0.6] (nodeA0) {};



\addplot[name path=xaxis,domain={0:1},draw=none] {0};



\addplot[green!25] fill between[
of=home and foreign,
soft clip={domain=.65:.8},
];

\fill[black!25]  % Rectangles
		(axis cs: .65,{.45*(-.4*((.65)-1.9))^((\alphaparam*1.03)-1)+.3}) 
		rectangle (axis cs: .8,{.45*(-.4*((.65)-1.9))^((\alphaparam*1.03)-1)+.23});

\fill[red!25]  % Rectangles
		(axis cs: .8,{.45*(-.4*((.65)-1.9))^((\alphaparam*1.03)-1)+.3}) 
		rectangle (axis cs: 1.1435,{.45*(-.4*((.65)-1.9))^((\alphaparam*1.03)-1)+.23});

\draw[draw=black,dotted] (axis cs: .249,{.45*(-.4*((.249)-1.9))^((\alphaparam*1.03)-1)+.3}) -- (axis cs: .249,0);

\draw[draw=black,dotted] (axis cs: .65,{.45*(-.4*((.65)-1.9))^((\alphaparam*1.03)-1)+.3}) -- (axis cs: .65,0);

\draw[draw=black,dotted] (axis cs: .8,{.45*(-.4*((.8)-1.9))^((\alphaparam*1.03)-1)+.3}) -- (axis cs: .8,0);

\addplot[name path=home_shift,domain={0.04:1.06},black,samples=100,dashed] 
		{.45*(-.4*(x-1.9))^((\alphaparam*1.03)-1)+.23} 
		node[pos=1, right, yshift=+10pt,xshift=-8pt,black]{$\widetilde{Y_L}$};

\end{axis}

% Draw axes and lines
\draw (0,0) -- ({\width},0) node[midway, sloped, below=4pt] {$\bar{L}$}
														node[at start, sloped, below=4pt] {$O'$}
														node[at end, sloped, below=4pt] {$O$};
%\draw[very thin]  (-.1,5.5) -- (.1,5.5);	%tick
%\draw[very thin]  ({\width-.1},5.5) -- ({\width+.1},5.5);	%tick
\draw[->]  (0,0) -- (0,6) node[at end, left=10pt, below=0pt] {$w'$};   %label
%\draw[very thin]  ({\width-.1},{(1-\thetaparam)*5.5}) -- ({\width+.1},{(1-\thetaparam)*5.5});	%tick
\draw[->] ({\width},0) -- ({\width},6) node[at end, right=10pt, below=0pt] {$w$};
\end{tikzpicture}
